Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 67389-67390 [E8-27095]
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Federal Register / Vol. 73, No. 221 / Friday, November 14, 2008 / Rules and Regulations
Authority: 26 U.S.C. 7805 * * *
■ Par. 2. Section 1.1367–2(e) is
amended by revising the title of
paragraph Example 6.
and the first sentence of paragraph
Example 7.(i) to read as follows:
§ 1.1367–2 Adjustments to basis of
indebtedness to shareholder.
*
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(e) * * *
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Example 6. The $25,000 aggregate
principal amount applies to each
shareholder. * * *
*
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*
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*
Example 7. * * *
(i) The facts are the same as in Example 6,
in addition to which, on December 31, 2009,
A’s basis in the open account debt is reduced
under paragraph (b) of this section to $8,000.
* * *
*
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LaNita Van Dyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. E8–27024 Filed 11–13–08; 8:45 am]
BILLING CODE 4830–01–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Parts 4022 and 4044
Benefits Payable in Terminated SingleEmployer Plans; Allocation of Assets
in Single-Employer Plans; Interest
Assumptions for Valuing and Paying
Benefits
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
sroberts on PROD1PC70 with RULES
AGENCY:
SUMMARY: The Pension Benefit Guaranty
Corporation’s regulations on Benefits
Payable in Terminated Single-Employer
Plans and Allocation of Assets in
Single-Employer Plans prescribe interest
assumptions for valuing and paying
benefits under terminating singleemployer plans. This final rule amends
the regulations to adopt interest
assumptions for plans with valuation
dates in December 2008. Interest
assumptions are also published on the
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective December 1, 2008.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion, Manager, Regulatory
and Policy Division, Legislative and
Regulatory Department, Pension Benefit
Guaranty Corporation, 1200 K Street,
NW., Washington, DC 20005, 202–326–
4024. (TTY/TDD users may call the
VerDate Aug<31>2005
15:52 Nov 13, 2008
Jkt 217001
Federal relay service toll-free at 1–800–
877–8339 and ask to be connected to
202–326–4024.)
SUPPLEMENTARY INFORMATION: The
PBGC’s regulations prescribe actuarial
assumptions—including interest
assumptions—for valuing and paying
plan benefits of terminating singleemployer plans covered by title IV of
the Employee Retirement Income
Security Act of 1974. The interest
assumptions are intended to reflect
current conditions in the financial and
annuity markets.
Three sets of interest assumptions are
prescribed: (1) A set for the valuation of
benefits for allocation purposes under
section 4044 (found in Appendix B to
Part 4044), (2) a set for the PBGC to use
to determine whether a benefit is
payable as a lump sum and to determine
lump-sum amounts to be paid by the
PBGC (found in Appendix B to Part
4022), and (3) a set for private-sector
pension practitioners to refer to if they
wish to use lump-sum interest rates
determined using the PBGC’s historical
methodology (found in Appendix C to
Part 4022).
This amendment (1) adds to
Appendix B to Part 4044 the interest
assumptions for valuing benefits for
allocation purposes in plans with
valuation dates during December 2008,
(2) adds to Appendix B to Part 4022 the
interest assumptions for the PBGC to
use for its own lump-sum payments in
plans with valuation dates during
December 2008, and (3) adds to
Appendix C to Part 4022 the interest
assumptions for private-sector pension
practitioners to refer to if they wish to
use lump-sum interest rates determined
using the PBGC’s historical
methodology for valuation dates during
December 2008.
For valuation of benefits for allocation
purposes, the interest assumptions that
the PBGC will use (set forth in
Appendix B to part 4044) will be 7.92
percent for the first 20 years following
the valuation date and 6.99 percent
thereafter. These interest assumptions
represent an increase (from those in
effect for November 2008) of 0.83
percent for the first 20 years following
the valuation date and 0.83 percent for
all years thereafter.
The interest assumptions that the
PBGC will use for its own lump-sum
payments (set forth in Appendix B to
part 4022) will be 4.75 percent for the
period during which a benefit is in pay
status and 4.00 percent during any years
preceding the benefit’s placement in pay
status. These interest assumptions
represent an increase (from those in
PO 00000
Frm 00031
Fmt 4700
Sfmt 4700
67389
effect for November 2008) of 1.00
percent in the immediate annuity rate
and are otherwise unchanged. For
private-sector payments, the interest
assumptions (set forth in Appendix C to
part 4022) will be the same as those
used by the PBGC for determining and
paying lump sums (set forth in
Appendix B to part 4022).
The PBGC has determined that notice
and public comment on this amendment
are impracticable and contrary to the
public interest. This finding is based on
the need to determine and issue new
interest assumptions promptly so that
the assumptions can reflect current
market conditions as accurately as
possible.
Because of the need to provide
immediate guidance for the valuation
and payment of benefits in plans with
valuation dates during December 2008,
the PBGC finds that good cause exists
for making the assumptions set forth in
this amendment effective less than 30
days after publication.
The PBGC has determined that this
action is not a ‘‘significant regulatory
action’’ under the criteria set forth in
Executive Order 12866.
Because no general notice of proposed
rulemaking is required for this
amendment, the Regulatory Flexibility
Act of 1980 does not apply. See 5 U.S.C.
601(2).
List of Subjects
29 CFR Part 4022
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
29 CFR Part 4044
Employee benefit plans, Pension
insurance, Pensions.
In consideration of the foregoing, 29
CFR parts 4022 and 4044 are amended
as follows:
■
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE-EMPLOYER
PLANS
1. The authority citation for part 4022
continues to read as follows:
■
Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
2. In appendix B to part 4022, Rate Set
182, as set forth below, is added to the
table.
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
E:\FR\FM\14NOR1.SGM
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14NOR1
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67390
Federal Register / Vol. 73, No. 221 / Friday, November 14, 2008 / Rules and Regulations
For plans with a valuation
date
Rate set
On or after
*
Before
*
182
12–1–08
3. In appendix C to part 4022, Rate Set
182, as set forth below, is added to the
table.
*
*
*
4.00
*
n1
*
n2
*
*
4.00
7
8
n1
n2
*
i1
4.75
i2
*
4.00
*
01–1–09
*
Deferred annuities (percent)
Immediate
annuity rate
(percent)
Before
12–1–08
i3
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
For plans with a valuation
date
182
i2
*
4.00
4.75
*
On or after
i1
*
01–1–09
■
Rate set
Deferred annuities (percent)
Immediate
annuity rate
(percent)
i3
4.00
*
*
*
4.00
7
8
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
PART 4044—ALLOCATION OF
ASSETS IN SINGLE-EMPLOYER
PLANS
Appendix B to Part 4044—Interest
Rates Used To Value Benefits
5. In appendix B to part 4044, a new
entry for December 2008, as set forth
below, is added to the table.
*
■
4. The authority citation for part 4044
continues to read as follows:
■
*
*
*
*
The values of it are:
For valuation dates occuring in the month—
it
*
*
*
December 2008 ................................................................
Issued in Washington, DC, on this 10th day
of November 2008.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension
Benefit Guaranty Corporation.
[FR Doc. E8–27095 Filed 11–13–08; 8:45 am]
BILLING CODE 7709–01–P
for t =
it
for t =
1–20
*
.0699
>20
*
.0792
FOR FURTHER INFORMATION CONTACT:
National Park Service, Victor Knox,
Deputy Regional Director, Alaska
Regional Office, 240 West 5th Ave.,
Anchorage, AK 99501. Telephone: (907)
644–3510. E-mail:
akro_regulations@nps.gov. Fax: (907)
644–3816.
SUPPLEMENTARY INFORMATION:
DEPARTMENT OF THE INTERIOR
Background
National Park Service
On April 28, 2008, the NPS published
in the Federal Register proposed
regulations to revise Denali National
Park and Preserve regulations in
Subpart L of 36 CFR part 13. This rule
implements certain decisions made in
the 2006 Final Environmental Impact
Statement (EIS) and Record of Decision
(ROD) regarding the Denali Backcountry
Management Plan (BMP) and the 2007
Environmental Assessment (EA) and
Finding of No Significant Impact
(FONSI) for subsistence use of off-road
vehicles in the Cantwell Traditional Use
Area (TUA). The final regulations (1)
establish group size limits in the
backcountry, restrict the number of
climbers on Mount McKinley from April
36 CFR Part 13
RIN 1024–AD69
National Park System Units in Alaska
National Park Service, Interior.
ACTION: Final rule.
sroberts on PROD1PC70 with RULES
AGENCY:
SUMMARY: This rule implements recent
management decisions affecting Denali
National Park and Preserve regarding
backcountry management, climbing
Mount McKinley, and off-road vehicle
use for subsistence purposes.
DATES: This rule is effective on
December 15, 2008.
VerDate Aug<31>2005
17:21 Nov 13, 2008
Jkt 217001
PO 00000
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it
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for t =
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N/A
N/A
1 through August 1 to a maximum of
1500, and require camping permits
(currently required through the
compendium) in accordance with the
2006 BMP/EIS; and (2) restrict off-road
vehicle use for subsistence purposes to
designated routes and trails in Windy
Creek, Cantwell Creek, and Bull River
drainages in the Cantwell Traditional
Use Area in accordance with the 2007
EA/FONSI. Comments received and the
corresponding NPS responses are
summarized below. Modifications to the
proposed rule are listed under Changes
to the Final Rule. As used within this
document, the terms ‘‘we,’’ ‘‘our,’’ and
‘‘us’’ refer to the National Park Service.
Summary of Comments
The proposed rule was published for
public comment on April 28, 2008 (73
FR 22890), with a 60 day comment
period lasting until June 27, 2008. The
National Park Service received three
timely comments. Of the three
comments, one was from the State of
Alaska, one was from non-governmental
organizations (consolidated response
from two signatory groups), and one was
E:\FR\FM\14NOR1.SGM
14NOR1
]]>Agencies
[Federal Register Volume 73, Number 221 (Friday, November 14, 2008)]
[Rules and Regulations]
[Pages 67389-67390]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-27095]
=======================================================================
-----------------------------------------------------------------------
PENSION BENEFIT GUARANTY CORPORATION
29 CFR Parts 4022 and 4044
Benefits Payable in Terminated Single-Employer Plans; Allocation
of Assets in Single-Employer Plans; Interest Assumptions for Valuing
and Paying Benefits
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Pension Benefit Guaranty Corporation's regulations on
Benefits Payable in Terminated Single-Employer Plans and Allocation of
Assets in Single-Employer Plans prescribe interest assumptions for
valuing and paying benefits under terminating single-employer plans.
This final rule amends the regulations to adopt interest assumptions
for plans with valuation dates in December 2008. Interest assumptions
are also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective December 1, 2008.
FOR FURTHER INFORMATION CONTACT: Catherine B. Klion, Manager,
Regulatory and Policy Division, Legislative and Regulatory Department,
Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington,
DC 20005, 202-326-4024. (TTY/TDD users may call the Federal relay
service toll-free at 1-800-877-8339 and ask to be connected to 202-326-
4024.)
SUPPLEMENTARY INFORMATION: The PBGC's regulations prescribe actuarial
assumptions--including interest assumptions--for valuing and paying
plan benefits of terminating single-employer plans covered by title IV
of the Employee Retirement Income Security Act of 1974. The interest
assumptions are intended to reflect current conditions in the financial
and annuity markets.
Three sets of interest assumptions are prescribed: (1) A set for
the valuation of benefits for allocation purposes under section 4044
(found in Appendix B to Part 4044), (2) a set for the PBGC to use to
determine whether a benefit is payable as a lump sum and to determine
lump-sum amounts to be paid by the PBGC (found in Appendix B to Part
4022), and (3) a set for private-sector pension practitioners to refer
to if they wish to use lump-sum interest rates determined using the
PBGC's historical methodology (found in Appendix C to Part 4022).
This amendment (1) adds to Appendix B to Part 4044 the interest
assumptions for valuing benefits for allocation purposes in plans with
valuation dates during December 2008, (2) adds to Appendix B to Part
4022 the interest assumptions for the PBGC to use for its own lump-sum
payments in plans with valuation dates during December 2008, and (3)
adds to Appendix C to Part 4022 the interest assumptions for private-
sector pension practitioners to refer to if they wish to use lump-sum
interest rates determined using the PBGC's historical methodology for
valuation dates during December 2008.
For valuation of benefits for allocation purposes, the interest
assumptions that the PBGC will use (set forth in Appendix B to part
4044) will be 7.92 percent for the first 20 years following the
valuation date and 6.99 percent thereafter. These interest assumptions
represent an increase (from those in effect for November 2008) of 0.83
percent for the first 20 years following the valuation date and 0.83
percent for all years thereafter.
The interest assumptions that the PBGC will use for its own lump-
sum payments (set forth in Appendix B to part 4022) will be 4.75
percent for the period during which a benefit is in pay status and 4.00
percent during any years preceding the benefit's placement in pay
status. These interest assumptions represent an increase (from those in
effect for November 2008) of 1.00 percent in the immediate annuity rate
and are otherwise unchanged. For private-sector payments, the interest
assumptions (set forth in Appendix C to part 4022) will be the same as
those used by the PBGC for determining and paying lump sums (set forth
in Appendix B to part 4022).
The PBGC has determined that notice and public comment on this
amendment are impracticable and contrary to the public interest. This
finding is based on the need to determine and issue new interest
assumptions promptly so that the assumptions can reflect current market
conditions as accurately as possible.
Because of the need to provide immediate guidance for the valuation
and payment of benefits in plans with valuation dates during December
2008, the PBGC finds that good cause exists for making the assumptions
set forth in this amendment effective less than 30 days after
publication.
The PBGC has determined that this action is not a ``significant
regulatory action'' under the criteria set forth in Executive Order
12866.
Because no general notice of proposed rulemaking is required for
this amendment, the Regulatory Flexibility Act of 1980 does not apply.
See 5 U.S.C. 601(2).
List of Subjects
29 CFR Part 4022
Employee benefit plans, Pension insurance, Pensions, Reporting and
recordkeeping requirements.
29 CFR Part 4044
Employee benefit plans, Pension insurance, Pensions.
0
In consideration of the foregoing, 29 CFR parts 4022 and 4044 are
amended as follows:
PART 4022--BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS
0
1. The authority citation for part 4022 continues to read as follows:
Authority: 29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and 1344.
0
2. In appendix B to part 4022, Rate Set 182, as set forth below, is
added to the table.
Appendix B to Part 4022--Lump Sum Interest Rates for PBGC Payments
* * * * *
[[Page 67390]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
182 12-1-08 01-1-09 4.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 182, as set forth below, is
added to the table.
Appendix C to Part 4022--Lump Sum Interest Rates for Private-Sector
Payments
* * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
182 12-1-08 01-1-09 4.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
PART 4044--ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS
0
4. The authority citation for part 4044 continues to read as follows:
Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.
0
5. In appendix B to part 4044, a new entry for December 2008, as set
forth below, is added to the table.
Appendix B to Part 4044--Interest Rates Used To Value Benefits
* * * * *
----------------------------------------------------------------------------------------------------------------
The values of it are:
For valuation dates occuring -----------------------------------------------------------------------------------
in the month-- it for t = it for t = it for t =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
December 2008............... .0792 1-20 .0699 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 10th day of November 2008.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension Benefit Guaranty Corporation.
[FR Doc. E8-27095 Filed 11-13-08; 8:45 am]
BILLING CODE 7709-01-P
